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Maria Gilda Racelis

Seriously. Who Needs More Closing Delays? The Dilemma over Dodd–Frank Wall Street Reform and Consumer Protection Act.

Dodd–Frank Wall Street Reform and Consumer Protection Act.

Good Faith Estimate (GFE), HUD-1 and Truth and Lending Disclosure will be going away due to  DoddFrank Wall Street Reform and Consumer Protection Act.


Is this a stupid change? “The government wants the consumer to have 3 days to make sure they are comfortable with the numbers. In 2008, the government came out with laws that stated the lender could not charge more than what was on the good faith estimate. And that was given to them at the time of application.


The consumer is already protected by the laws implemented in 2008.


Usually, when the bank issues the clear to close, the closing can take within 48 hours. Now, the loan officer has to become more aware of the dates and make sure that the loan is cleared to close at least 5-6 days prior to closing.


NAR has also seen huge potential problems due to the changes which prompted them to issue these advice:


1) Make sure clients are ready 7 days prior to closing

2) Make sure sellers abide by the agreement.

3) Keep communications tight among the agents, the clients, the loan officers and processors and the setllement agents.

4) Add 15 days to the closing time.

5) Do the walk-through early to allow for changes.


Although I agree with all the five advice, I am not too keen on heeding number 4 as the additional 15 days is not necessary unless there is a problem with the walk-through which could be prevented by doing 1, 2 and 3.


What purpose does the change serve? I certainly can’t fathom any right now except  for more tedious, more problematic and more closing delays as there are many variables and uncertanties that can happen each day. And I don’t see a quick resolution to unexpected eventualities prior to closing with the implementation of  Dodd–Frank Wall Street Reform and Consumer Protection Act.


As the adage goes, “Why fix what isn’t broken?”


View and listen to NAR’s video regarding the change that will take place on August 1, 2015,


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Maria Gilda Racelis
I am a full-time realtor and a no-nonsense individual when it comes to rendering services to my clients. I take my job and the responsibility it entails seriously. My clients come first. I ensure that they know and feel I am working for their best interest. However, I do not carry out tasks to compromise my principle. I conduct my business with pride, honesty and integrity.
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